Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Thursday, December 18, 2008

Business Payment Support Service

Did you know?

That HM Revenue and Customs now have a Business Payment Support Service?

This could really help your business …

In the Pre Budget Report delivered by the Chancellor Alistair Darling on 24th November 2008, he said “at this time of real difficulty for many small businesses, they need ‘time to pay’ when meeting their tax bills. I intend to meet this need. From today HMRC will enable firms facing difficulties to spread their tax on a timetable they can afford. This will cover not just VAT, as some have suggested, but all business taxes. VAT, corporation tax, income tax and national insurance. And not for six months but for as long as they need.”

What does this mean?

That you now have a real alternative to getting into difficulty paying any of your businesses tax bills over the coming months. If you are going to struggle with your cash flow and have some payments to make to HMRC then make use of this service – now.

They will not make any surcharges for late payment as they would normally do, but there will be an interest charge.

The Business Payment Support Service however only applies to amounts that are about to become due, or are just overdue. They cannot deal with outstanding overdue payments where HMRC have already contacted you about payment.

More details are available at: http://www.hmrc.gov.uk/pbr2008/business-payment.htm

What do I do?

Call 0845 302 1435 and talk about your circumstances to one of the advisors. They promise to give you a decision in about 10 minutes for straight forward cases.

What do I need?

You do need to do a little homework first. They will need your tax reference number, details of the amounts that you will have trouble paying and in their words “basic details of your businesses income and outgoings”. This really means you need to have done at least a basic cash flow forecast.

Before you call, spend a bit of time forecasting your cash flow out as far as you need to, so you can see with a good margin how quickly you will be able to repay the amounts due. There is no point in agreeing a deal that you cannot achieve, so spend some time beforehand getting to grips with where you are.

We can help!

We have already had experience of dealing with this service on behalf of clients, although it is very early days yet. HMRC have directly admitted to us that apparently the staff handling the calls are newly recruited and inexperienced. However, they do have a mandate to resolve all calls within 4 days, although their aim is to deal with them when you call and put in place a ‘time to pay’ deal. It is critical that you are prepared before you call as this will give you the best chance of getting a deal that works for you.

Get in touch with us now to help you through this!

If you don’t use our help, but do use the HMRC Service we would really like to know how you get on!
Please e-mail your experiences to me on gmumford@insightassociates.co.uk.

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Insight Associates, Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL, UK
Tel: +44 (0)1279 647447 Fax: +44 (0)1279 814512
Insight Associates is a trading name of Financial Catalysts Limited. Registered in England and Wales Number: 5670047. Registered Office as above. Disclaimer | Cookies